The cryptocurrency market declined in a move that appeared to be a broad sell-off during Tuesday trading. Bitcoin fell to a two-week low of $53,200 while Ethereum plunged from recently set highs of $3,534 to lows of $3,166.
According to Bloomberg News, traditional markets came under selling pressure when U.S. Treasury, Secretary Janet Yellen hinted that interest rates might have to increase to stop the economy from overheating. It is quite significant as this may affect the risk-taking adventure of traders. In separate news, Yellen says she wasn’t predicting or recommending rate hikes.
Earlier before Tuesday’s drop, Bitcoin price has been trading in a range between $53,000 and $58,986. David Lifchitz, Chief investment officer of ExoAlpha stated:
“Without any strong catalyst, breaking above $60k looks difficult at this time, and a break below $50k may drive Bitcoin down to $30k.’ Howbeit the question remains if Bitcoin is in a bear market? Market analyst, Michael van de Poppe tweeted ”Bitcoin is not in a bear market”.
According to Investopedia, a bear market is when a market experiences prolonged price declines. It typically describes a condition in which prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
With Bitcoin still struggling to secure a daily close above $58,000, Altcoins continue to make the case for an upcoming Altseason. Dogecoin remains the day’s top performer with its token price surging 41% to a record high at $0.6333. With a present market capitalization of $72.4 billion, DOGE has overtaken Twitter, U.S. Car manufacturer Ford, and now, Ripple (XRP).
Ethereum Classic (ETC) is posting gravity-defying moves, as it rallied strongly by nearly 38% to a new all-time high at $67.91. Ethereum classic has consistently posted new all-time highs in the last 48 hours.
As of the time of writing, the overall cryptocurrency market cap now stands at $2.24 trillion and Bitcoin’s dominance rate is 45.5%. While regulatory concerns may have played some role in the previous pullbacks, other significant developments may determine BTC’s recovery.
According to a Twitter user, Bitcoin archive noted that ”A bill introduced in the New York State Senate is seeking to halt Bitcoin mining for 3 years to assess its impact on the environment.”
According to markets insider, the bill is seeking to halt Bitcoin mining for three years until the state has assessed its impact on the environment. Senator Kevin Parker of New York introduced Senate Bill 6486 to the State Senate’s Environmental Conservation Committee on Monday, according to The Block.
The bill will specifically look into the greenhouse gas emissions caused by Bitcoin mining, including its effects on water, air, and wildlife. The assessment will produce a report, which will then be issued to the public and will be subject to a 120-day public comment period.
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